Lean Six Sigma implementation model in manufacturing SMEs in a developing country: a latent variable modelling approach

Abstract

Purpose Research on Lean Six Sigma (LSS) in manufacturing small- and medium-sized enterprises (SMEs) in developing countries is scarce. This study aims to establish an LSS implementation model tailored to these companies in Colombia, using a hierarchical structure of the critical success factors (CSFs) identified and validated through a latent variable modelling approach. Design/methodology/approach A comprehensive literature review was conducted, and data were collected via online surveys of manufacturing SMEs. The surveys characterised the level of LSS implementation and identified CSFs (latent variables). These factors were then validated using psychometric tests and confirmatory factor analysis (CFA). Findings Among 352 surveyed SMEs, 22.7% have implemented Lean, Six Sigma or LSS. Eight latent variables out of 13 initial factors were corroborated through validation. Alignments between statistical estimator values and the constructs’ conceptual meanings facilitated objective comparisons, substitutions and exclusions of variables and factors. This guided evidence-based decisions to refine the model, uncovering relationships between variables applicable to SMEs’ reality. The result is an LSS implementation model that considers these context-specific relationships. Research limitations/implications This study relied on quantitative surveys and statistical analysis; future work could complement it with qualitative methods like case studies. The latent variable modelling approach demonstrated can be used to analyse and validate variables affecting organisational strategies implementation. Originality/value This research offers a novel structured approach for deploying LSS in SMEs, derived from CSFs validated through the latent variable modelling approach and organised hierarchically according to their average scores. It advances practical and theoretical understanding of LSS implementation in developing countries – particularly Colombia – and provides an evidence-based implementation framework for practitioners in similar contexts.